Crypto exchange FTX continues to try to stabilize the cryptocurrency market in the current environment and, according to Bloomberg, plans to buy South Korean crypto exchange Bithumb.
According to Bloomberg sources, FTX is in the final stages of negotiations to acquire Bithumb. It is reported that negotiations have been going on for several months. Despite the fact that there are currently more than 8 million registered users on the South Korean exchange, and the total trading volume has exceeded $1 trillion, the crypto site is constantly facing difficulties, the article says.
Back in 2020, Bithumb faced a number of lawsuits. The company wanted to be acquired by the Huobi exchange, but the deal did not work out. In June 2022, FTX acquired the Canadian crypto exchange Bitvo. CEO Sam Bankman-Fried said in a statement that the purchase was made to expand FTX’s global footprint.
It makes sense that FTX might be looking to buy crypto companies at a discount during a bearish market. Earlier in July, Bankman-Fried said that FTX had several billion dollars that could be used to stabilize other crypto companies and, in theory, these funds could be used for M&A.
FTX management believes that it is their responsibility to stabilize the cryptocurrency market: financial support for small companies, as well as the establishment of various kinds of funds aimed at the startup segment.
Earlier, FTX began negotiations with potential investors to prepare a new round of funding. The exchange is reportedly planning to raise $400 million or more in funding.
Source: Bits
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